Arguably, the two most important forces affecting the world economy
in the closing decades of the 20th century were globalization and
privatization. Here, privatization refers to the retreat of the
state from the economic arena, while globalization refers to the
worldwide spread of efficient market-based systems and the
consequent growth of multinational firms. The twin forces of
privatization and globalization have proceeded in parallel, but
have nonetheless had significant interactions with one another. (i)
the spectacular collapse of the state-run socialist economies; (ii)
the transfer of state-run enterprises to market governance in much
of Western Europe; and (iii) the more subtle dismantling of state
controls and legal monopolies in some sectors in the United States.
General
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